Sorry if this is a bit of a newbie question...
I have just bought shares in a US company £SGU which is due to pay a quarterly dividend of $0.13.
I believe there is a withholding tax on these dividends?
I am holding this stock within my SIPP.
Is there a way to claim the withholding tax, or do we just have to suffer it?
Thanks in advance
Wayneskie
As far as I know the tax is deducted in the US so it’s nothing to do with HMRC. The 15% Is collected by the Federal tax agency and stays in the USA. Annoying and unfair but not much we can do about it.
Excerpt from the link I posted...
A W-8BEN form means we can claim a US tax reduction for you on your dividends and interest from US shares. Withholding tax rates can be reduced from 30% to 15%, or to 0% if your shares are held in a SIPP.
herbie47 your correct, some SIPP providers are better than other.
I'm with IWEB, who are general good, apart from the issue of them not offering zero withholding tax on US dividends in a SIPP (even if you submit a W-8BEN form)
https://www.iweb-sharedealing....
"Other SIPP providers may offer a zero rate of Withholding Tax on US sourced dividends, which means no Withholding Tax is deducted so all of the dividend is received at the gross amount. We do not currently offer this arrangement and do not offer a foreign Withholding Tax reclaim service"
If I remember correctly, the issue arises as Iweb hold its shares through CREST, while other brokers use a different system which does allow them to reclaim the tax on behalf of their customers.
